How are you doing with that loan modification you requested last year?
How is that big bank treating you?
Are they sympathetic to your financial difficulties?
Willing to lower your interest rate?
Help you through these tough times?
Hey, its the real world, deal with it, nobody helps them out, right?
Those poor mortgage companies have to make it on their own, nobody helps them.
Not so fast my naieve friend.
Turns out you, in your taxpayer role, have been lowering the interest rate the big banks pay for their money to, literally, next to nothing.
That’s right, not 1%, not .1%, but .01%.
Well, of course, Credit Suisse, Royal Bank of Scotland, and, the company we all work for, Goldman Sachs, are too big to fail.
You and me: not so much.
Like the Deltas on double secret probation in “Animal House”, nobody knew about these loans.
The Federal Reserve, actually being a bunch of private banks, did not bother to tell the government.
The banks, not wanting to needlessly worry the stock market, did not even tell its shareholders.
The poor suckers who are subsidizing the rescue of one criminal class, the mortgage industry, by another criminal class, the federal government?
Hell, no, nobody bothered to check with us.
These “special” loans, from a “special” fund, were given out at a time when the Fed was charging everyone else .5%, of half a per cent.
Which is still cheaper than you and I can get on our mortgages.
But, hey, that is how the banks make all that money, the government lends it to them at artificially low rates, so they can lend it to us, and pocket the difference.
Well, to be fair, they do not keep all of it.
They share a bunch of it with the crooked politicians who keep bailing them out.
Who Gets A Loan When Needed?